What makes Finland the happiest country in the world?
According to the World Happiness Report, released in March 2021, Finland is the world’s happiest country and has been such since 2017. Some other countries that topped the 2021/2020 list are Iceland, Denmark, Switzerland, and Netherland. The US and the UK ranked 14th and 18th, respectively. To measure happiness, the report uses six key variables: income, social support, healthy life expectancy, freedom to make life choices, generosity, and trust in government.
Income: Finns earn $50,247, above the OECD average
The World Happiness Report measures income level as GDP per capita in terms of Purchasing Power Parity (PPP). This number for Finland is estimated at $50,247, which puts Finland above the OECD* average. The PPP GDPs per capita for the US and the UK are $65,240 and $43,903, accordingly. Finns also enjoy a high work-life balance and employment. One way to measure the work-life balance is by estimating the amount of time people spend working. In Finland, only 4% of people work very long hours, which is below the OECD average of 11%. Likewise, 70% of working-age Fins aged 15–64 have a job, which is above the OECD average of 68%.
*OECD is an economic organization that includes 37 member countries. Most OECD members are developed European nations.
Social support: 96% of Finns say they can rely on their friends & family
Social support is measured as the national average of responses to the question, “If you were in trouble, do you have relatives or friends you can count on to help you whenever you need them, or not?”. More than 96% of Fins say “Yes.” It is interesting to note that countries that scored the highest in this section are mostly small nations with a population of less than 10 million. It is possible that making strong social bonds is easier in smaller communities where everyone knows everyone. The US and the UK scored 20th and 25th, accordingly.
Freedom: 96% of Finns say they are satisfied with the level of freedom
The freedom to make key life decisions is the national average of responses to the question “Are you satisfied or dissatisfied with your freedom to choose what you do with your life?”. More than 96% of respondents in Finland replied “Satisfied.” This puts Finland 3rd on the list. Such high ranking complies with the Cato Institute’s Human Freedom Index 2020, which placed Finland 5th among 162 countries in 2020. Cato Institute uses 76 different indicators to measure freedom, including the legal system, safety, and expression. In the Human Freedom Index report, both the US and the US are ranked 17th.
Corruption: Finland is one of the least corrupt countries
The corruption perception in the World Happiness Report is estimated as the average of answers to two questions: “Is corruption widespread throughout the government or not?” and “Is corruption widespread within businesses or not?” The report puts Finland as the 1st country with the lowest perception of corruption. This ranking complies with the report by transparency international, which also ranked Finland as TOP 5 least corrupt countries.
Healthy life expectancy: 72.1 years
Healthy life expectancy is the number of years an average person lives, excluding the time a person lives in less than full health due to disease or injury. An average Finn lives 72.1 years of a healthy life, which puts Finland 25th on this list. The average healthy life expectancy for US and UK residents is 68.1 and 72.7 years, accordingly.
Generosity: but Finns donate less than their neighbors
Generosity is measured by regressing the national average of responses to the question “Have you donated money to a charity in the past month?” on GDP per capita. Here, Finland ranked 75th. Meanwhile, the US and UK scored 32nd and 6th, respectively. However, it is worth mentioning that generosity is the least significant component among the six mentioned before.
Finland: social bonds, stable economy, and effective government
Despite having large tax rates, Finland is known for its strong social welfare programs. Students enjoy excellent tuition-free education, citizens get access to very affordable healthcare, and each parent gets paid parental leave up to 164 days. According to the Global Innovation Index 2020 by INSEAD, Finland is also the 7th most innovative economy in the world. It particularly excels in patent families, the rule of law, and ease of resolving insolvency.
